That's the most positive feedback I've seen in a while, so let me throw this in:
What about the pane of the left of the dialog box, with Desktop, My documents (Libraries), etc. Does anyone think it would be nice to be able to point something there? What I don't know is if it could be a generic location that uses a configuration variable to derive its target.
Generally, I like it when the dialog boxes start in folder is 100% under the control of config variables, so it defaults to the best location, but the other menus allows you to offer "Or here, or here, or maybe even here!"